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Keywords:Prices 

Report
Sectoral price facts in a sticky-price model

We develop a multi-sector sticky-price DSGE (dynamic stochastic general equilibrium) model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across-sector pricing complementarities that contribute to a slow response of prices to aggregate shocks. In turn, input-market segmentation at the sectoral level induces within-sector pricing substitutability, which helps the model deliver a fast response of prices to sector-specific shocks. Estimating the factor-augmented vector autoregression specification of ...
Staff Reports , Paper 495

Journal Article
Jobs and prices

FRBSF Economic Letter

Journal Article
The link between money and prices : 1971-76

Review , Volume 58 , Issue Jun , Pages 17-23

Working Paper
Bank deposit rate clustering: theory and empirical evidence

An examination of banks' optimal deposit-rate-setting behavior when some customers have limited recall, showing that when banks exploit this phenomenon, deposit rates will tend to be set at round fractions and will be relatively "sticky" at these levels.
Working Papers (Old Series) , Paper 9604

Working Paper
Regional patterns in the law of one price: the roles of geography vs. currencies

We find evidence that the law of one price (LOOP) holds more nearly for country pairs that are within geographic regions than for country pairs that are not. These findings are established using consumer price data from 23 countries (including data from eight North American cities.) We find that failures of LOOP are closely related to nominal exchange rate variability, suggesting a link to sticky nominal prices. We also find that distance can explain failures of LOOP, suggesting the failures arise from imperfect market integration. However, these two sources do not explain all of the failures ...
International Finance Discussion Papers , Paper 533

Journal Article
Sticky prices: what is the evidence?

This article reviews the idea that sticky prices are important for understanding business cycles. Mark Wynne begins with a critical survey of the literature documenting the stylized facts about prices in individual markets. His first point is that there is remarkably little evidence that the actual transactions prices of most products are, in fact, sticky. Such evidence as there is to support the notion of widespread price stickiness is heavily biased toward low-tech products that account for a very small fraction of total output and is a thin reed on which to base a theory of business ...
Economic and Financial Policy Review , Issue Q I , Pages 1-12

Working Paper
Productivity, Tradability, and the Long-Run Price Puzzle

Long-run cross-country price data exhibit a puzzle. Today, richer countries exhibit higher price levels than poorer countries, a stylized fact usually attributed to the "Balassa-Samuelson" effect. But looking back fifty years, or more, this effect virtually disappears from the data. What is often assumed to be a universal property is actually quite specific to recent times. What might explain this historical pattern? We adopt a framework where goods are differentiated by tradability and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability ...
Working Paper Series , Paper 2004-08

Report
Asset market hangovers and economic growth: U.S. housing markets

This paper presents evidence that speculative bubbles can have sizeable effects on house prices, and on housing investment. We infer that deviations of asset prices from fundamental values may have serious consequences for real activity, and explore some policy implications. The analysis relies on a panel of U.S. state-level data covering 1973-1996.
Research Paper , Paper 9801

Speech
Strengthening our monetary policy framework: a speech at the 20th Annual Hyman P. Minsky Conference, April 14, 2011, New York, New York

Presented by Charles I. Plosser, President and Chief Executive Officer, Federal Reserve Bank of Philadelphia. 20th Annual Hyman P. Minsky Conference, April 14, 2011, New York, New York.
Speech , Paper 52

Journal Article
Would a little inflation produce a bigger recovery? : Why some economists actually want the Fed to push prices higher - and what is might cost the economy

Related links: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2011/q4/feature1_weblinks.cfm
Econ Focus , Volume 15 , Issue 4Q , Pages 18-21

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